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new partner, but ive lost my tax credits and he cant contribute.

(25 Posts)
l44ngb Fri 24-Jul-09 11:43:42

My partner moved in with me and my 3 kids, he has 3 kids who live with mum in the former marital home, which cant be sold because it's in negative equity, he's currently paying off £40ks worth of debts, and giving her above csa rate maintainance, he's a good guy!! Trouble is because he has a decent job i not longer qualify for tax credits, but what he has left at the ned of the month doesnt cover what i lost. Do tax credit take into account his maintainance and/or debts?? Thanks

HappyMummyOfOne Fri 24-Jul-09 12:22:21

Debt is not taken into account for any benefits at all.

Tax credits are based on household income and dont take into account any outgoings therefore him paying maintenance is irrelevant re tax credits.

However as you have three children you will be getting three lots of cb, plus CTC for three children. Presumably you also get child maintenance from your childrens father and the wages from your partner so the household income should be enough to live on. If he has debts, then he can speak to CAB to see if the payments can be lowered.

You could always look for an evening/weekend job around his hours to bring in extra income.

KingCanuteIAm Fri 24-Jul-09 12:25:21

Happymummy, people do not get tax credit because they don't need it, they get it because their other income means that they do not have enough to live on!

If her dp contributes less than tax credit then it is perfectly reasonableto assume she does not have enough lef to live on [hmm

I find your post really quite judgemental!

HappyMummyOfOne Fri 24-Jul-09 12:54:48

The OP asked if tax credits took into account maintainance and debt - they dont which is what I answered.

"people do not get tax credit because they don't need it, they get it because their other income means that they do not have enough to live on" - I never said this or implied this. However tax credits are paid out upto a wage of £66k so people do get them when already having enough to live on but that was never part of the post anyway.

l44ngb Fri 24-Jul-09 12:56:54

Thank you kingcanuteiam!! Indeed, we are £400 down and that wasn't disposable income it was allocated to rent/bills!!

Guess it will be beans on toast for tea!!

KingCanuteIAm Fri 24-Jul-09 13:02:47

HappyMummy, you said "However as you have three children you will be getting three lots of cb, plus CTC for three children. Presumably you also get child maintenance from your childrens father and the wages from your partner so the household income should be enough to live on." you actually said that she should have enough to live on without the Tax Credit, which the op has made clear she does not.

Op, it is very tough when you have debts to take into account, tax credit do not take them into account, I thought they did take into account maintanence but I could be wrong on that one. I would suggest your dp get his payments sorted out to the minimum he can and work from there. I must sya it does sound a bit odd that he is contributing nothing to the household, how long do you expect this to last? Where was he living before he moved in with you?

l44ngb Fri 24-Jul-09 13:03:21

he earns no where near £66k, and even with my income it's still no where near that but tax credit said we no longer qualify.

KingCanuteIAm Fri 24-Jul-09 13:04:47

I thought the cut off was at £40k but it all depends on whether you are paying child care or not, if you are not it makes a big difference to things.

l44ngb Fri 24-Jul-09 13:11:18

kingcanuteiam, he does contribute but it is £400 less than i got from tax credits. this wont be forever, most of the debt will be paid off in a few years, and he had to take a 10% pay cut last year to prevent anymore redundancies, which will be re-instated soon. I knew about the debt soon after we met, but we all come with some sort of baggage. Guess i feel disgruntled because the ex got off with a clean slate (financially) and has a very comfortable going on - thanks to the blessed tax credits - god i miss em!!
i'm new to all this so please can you explain what all the abbreviations are!!

lal123 Fri 24-Jul-09 13:18:17

Don't know if the confusion is because of difference between child tax credits nad working tax credits? this might be useful?

KingCanuteIAm Fri 24-Jul-09 13:19:00

Ahh, I see, makes more sense now!

Do you mean the standard abbreviations like LOL or dd/dc? They are available at the top of the page on the Acronyms / abbreviations link.

Other links...
CTC, Child Tax Credit
CB, Child Benefit

Erm, are those what you mean or am I missing the point?

l44ngb Fri 24-Jul-09 13:24:30

ahhhhhhhhhhh i see, thanks for that!! blush

RumourOfAHurricane Fri 24-Jul-09 13:28:32

Message withdrawn

Ewe Fri 24-Jul-09 13:33:36

Your partner obviously needs to do something, consolidate his debts, reduce his CSA payments if possible.

Ultimately he can't afford to live, if he wasn't living with you he would be paying rent elsewhere, the situation needs resolving somehow. It's not really a tax credits issue.

l44ngb Fri 24-Jul-09 13:35:04

mmmm i should'nt of been so niave!!! been onto entitleto.com, and it says same as tc etc. thank you though

sugarpop Fri 24-Jul-09 13:35:31

I'm afraid I would be asking him to reduce his maintenance to csa level payments, why should your DC's suffer?

His circumstances have changed by moving in with you, he has new dependants which would be taken into account if his ex p were to pursue matters via the csa.

If he won't do that and you are worse off a sa family then maybe the decision to move in should have been postponed?

I also lost my tax credits when I married and for a short while was worse off because of it, similar reasons too. In the end things turned around.

l44ngb Fri 24-Jul-09 13:38:46

ewe, my point exactly, taking me out of the equation he'd be stuffed. think we'll look into doing something with the debts, but ultimatley they need paying, also if he's not paying out for the debts the ex will prob want more!!

Ewe Fri 24-Jul-09 13:41:27

Well she can't have more, assume he is still contributing to the mortgage on old house? As she will now be more than likely to qualify for working tax credits maybe he can come to an agreement with her?

Tamarto Fri 24-Jul-09 13:44:03

This is the kind of thing that needs looking into before moving in together, especially when children are involved.

abouteve Fri 24-Jul-09 13:54:12

It can be an catch to move in with someone who has financial baggage. I would never live with someone who wasn't in a position to provide the same level of income that I was losing by living with him.

I did it once and it caused resentment on my part as he could have contributed more. I had to work longer hours which meant not being around to collect my DC from school one day a week.

I hope you sort it out soon by finding out whether he can reduce his outgoings to provide more. He sounds like a decent man and you obviously love him to only be worrying about this now. smile

MollieO Fri 24-Jul-09 13:56:58

Maybe you can suggest to your dp that he pays the correct amount of CSA and gives the difference to you?

l44ngb Fri 24-Jul-09 13:58:34

yes, she gets the same as i did - 3 kids, nursery, part time work. they are still communicating well, but she wont budge on the money - thats where the debt came from!!!

l44ngb Fri 24-Jul-09 14:03:14

about eve, my ex husband is stashed, and i had 12 desperatly unhappy years, i walked away with my kids and our clothes, and he's fought long and hard to protect his precious money ever since. id rather be with my partner and eat beans on toast for the next 5 years!!

MrsGokWantstogotoHogwarts Fri 24-Jul-09 14:11:08

Go on to the CSA website and work out what he should be paying his ex

www.csa.gov.uk/en/setup/how-maintenance-calculated.asp

This is what he should start paying her whether she likes it or not. He has new commitments in his life now and should be thinking about you.

Maybe he should look at bankruptcy. Get him to look at the Bankruptcy board on MSE and also phone the debt charities and get advice re his situation.

forums.moneysavingexpert.com/forumdisplay.html?f=136

l44ngb Fri 24-Jul-09 14:14:00

mrs gok, i believe he should pay the csa rate, and he agrees......until he speaks to her! think it's a guilt thing. will look into the bankruptcy though. thanks

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